Question

what is the role of the firm's board of directors in managing the firm,and what are...

what is the role of the firm's board of directors in managing the firm,and what are the three legally obligated responsibilities they have to carry out?

Homework Answers

Answer #1

There are several roles and responsibilities played by the board of directors in managing the firm. Some are :

  • The board is responsible for the recruitment, supervising, retaining, evaluation, and compensation of the CEO or general manager of the company
  • The board plays an important strategic function while developing the vision, mission, and goals for the company.
  • The board designs a governance system for the business that provides a framework and a series of policies for the employees of the company.
  • Another responsibility of the board is developing a governance system that involves the procedure for board interacting with the CEO.
  • The board of directors also monitors and controls the operation of a company hence they are also in charge of the auditing process and hire the auditor. It should also make sure that the audit is done in a timely manner.

The three legally obligated responsibilities they have to carry out are. Duty of care (ecruitment, supervising, retaining, evaluation, and compensation) , loyalty (conducting audits), fidelity (corporate governance)

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